The Viewpoint - Underwriting in Equity Capital Issuances in India

Bar & Bench April 24 2012

By Anchal Dhir and Monal Mukherjee

Underwriting in a capital markets transaction typically means an obligation to subscribe to, or procure subscription for, the offered securities of a company. While the term “underwriter” is loosely used to refer to merchant bankers or lead managers or sponsors, an underwriter essentially is the entity that undertakes ‘underwriting’ in a transaction, thereby ensuring allocation of execution risk of a transaction amongst parties.

In the United States, underwriting is typically through a syndicate of investment banking firms that engage in marketing and book building, and make . . .

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